PETALING JAYA: Berjaya Corp Bhd (BCorp) is buying a 50% stake in Berjaya Kyoto Development (S) Pte Ltd (BKyoto) for RM97.3mil.
The seller of the stake is its 58%-owned Berjaya Land Bhd (BLand). After selling half of BKyoto to its parent, BLand will own the remaining 50%.
BCorp will undertake to advance up to RM152.74mil to BKyoto for the purpose of working capital and proportionate settlement of the inter-company loan with BLand.
Resort hotel developer BKyoto owns a five-acre parcel of freehold land, which is 2km from the Kyoto station. The land is also close to tourist attractions.
The Singapore-based firm is developing the land into a commercial project with 123 hotel rooms and 57 residences known as the Four Seasons Hotel & Residences. The project has a gross development value of RM1.05bil, with completion slated for the third quarter of 2016.
Some 45% of the construction work there has been completed.
BCorp said the proposal would provide an opportunity for it to invest directly and own the Four Seasons Project, an iconic luxury hotel and residences in Japan, thereby increasing its landbank and portfolio of the properties owned. In Malaysia, the conglomerate owns the luxury residences “The Ritz-Carlton Residences” to be marketed and managed by Ritz-Carlton Hotel.
BLand said it could reposition its financial resources and commitments to other property projects from the sale.
BLand would gain RM147.9mil from the sale.
BCorp did not expect any material effect on its earnings, net assets and gearing for the financial year ending April 30, 2016.
“However, the proposals are expected to contribute positively to the future earnings of the BCorp Group upon completion of the Four Seasons Project,” it said.
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